Conti in €4bn deal to sell ContiTech to investment firm Lone Star Funds

Hanover, Germany – Continental AG has agreed to sell its ContiTech industrial and materials arm to investment firm Lone Star Funds in a deal worth €4.0 billion.

The deal, announced 4 July, also includes performance-based payments of up to €250 million in subsequent years and is expected to generate cash proceeds of around €3.1 billion.

Of the cash proceeds, €2.5 billion will be returned to shareholders through a special dividend or a combination of a special dividend and share buybacks, said Continental in a statement.

The sale, which remains subject to regulatory approval, marks the final step in Continental's strategic restructuring following the spin-off of its automotive business as Aumovio last year and the sale of ContiTech's Original Equipment Solutions business earlier this year.

"With the sale of ContiTech, the supervisory board approved the final step in Continental's realignment," said supervisory board chair Sabrina Soussan.

"We are convinced that both companies will be better positioned to develop as independent businesses than as part of the same group. This strategic focus will make them both even stronger."

Also commenting, Continental CEO Christian Koetz said the transaction was "the beginning of a new era as a pure-play tire manufacturer.”

Lone Star Funds said it intends to build on ContiTech's position as one of the world's leading industrial materials specialists.

ContiTech, said Lone Star Funds CEO Donald Quintin, is "a well-positioned industrial company with outstanding technological capabilities and extensive expertise in materials."

"We are convinced of ContiTech's significant potential," the CEO added.

According to Quintin, Lone Star Fund will work closely with the ContiTech management "to further develop the business – through operational improvements and targeted investments in attractive growth markets."

ContiTech employs around 22,000 people worldwide and generated sales of €4.4 billion in 2025, with around 80% of revenue coming from industrial markets.

The business supplies rubber and thermoplastic products for sectors including mining, energy, construction, infrastructure, industrial manufacturing and mobility.

Following completion of the transaction, Continental will focus exclusively on its global tire business, which employs around 55,000 people across 19 production plants.

Passenger car tires accounted for 77% of tire sales in 2025, with EMEA generating the largest share of sales at 53%. Replacement tires represented 76% of total PCR sales.

The company said it will continue to prioritise ‘premium ultra-high-performance tires’ (18 inches and larger), which accounted for 55% of total PCR sales in 2025.

Furthermore, the tire manufacturer said North America and Asia have, in particular, been identified as ‘strategic growth markets’.